CHAPTER 2 THEORETICAL FOUNDATION. 2.1 Ecologically Conscious Consumer Behavior (ECCB)

Transcription

1 CHAPTER 2 THEORETICAL FOUNDATION 2.1 Ecologically Conscious Consumer Behavior (ECCB) The field of consumer behavior is the study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society (Hawkins, Mothersbaugh, & Best, 2007, p. 6). Ecologically Conscious Consumer Behavior is consumer behavior based on some awareness of the ecological impacts associated with a product or service, and a desire to reduce those impacts (RMIT Center for Design, 2004, p. 2). Straughan and Roberts (1999, p. 559) questioned the nature of the ecologically conscious consumer and whether the consumers differ from those in the past and how do they differ. Previous studies have made the characteristics of ecologically conscious consumers either as a primary point of investigation or as a secondary issue (Straughan & Roberts, 1999, p. 559). The majority of the past researches have looked at, and found, demographic variables associated with self-report measures of environmental commitment, or psychometric scales measuring environmental consciousness (e.g. Samdahl & Robertson, 1989; Zimmer et al., 1994) (Straughan & Roberts, 1999, p. 559). Some studies presented additional attitudinal or psychographic variables connected with 10

2 11 green attitudes and behavior (e.g. Roberts, 1996b; Roberts and Bacon, 1997; Stern, Dietz, & Kalof., 1993; Straughan & Roberts, 1999). 2.2 Market Segmentation In markets there are consumers, and each consumer is different in one way or another. They may differ in their wants, resources, locations, buying attitudes, and buying practices (Kotler & Armstrong, 2008, p. 173). Sellers and advertisers want to be able to determine what the potential market is for their product or service, and the best ways to reach potential consumers (Terrell, 2005). To know their potential market, companies must identify the characteristics of individuals likely to be interested in that particular product or service, establish how many such individuals there are, as well as study how these people behave and respond to particular advertising approaches (Terrell, 2005) Segmenting Consumer Markets Marketers must try to segment markets using different segmentation variables, since there is no single way to segment a market (Kotler & Armstrong, 2008, p. 173). Kotler and Armstrong (2008, p. 173) stated that consumer markets can be segmented using demographic and psychographic variables. Straughan and Roberts (1999) segmented green consumers using demographic and psychographic variables Demographic Segmentation Demographic segmentation calls for dividing the market into groups based on variables such as age, gender, family size, family life cycle,

3 12 income, occupation, education, religion, race, generation, and nationality. Demographic factors are the most popular bases for segmenting customer groups, one reason for this is that consumer needs, wants, and usage rates often differ closely with demographic variables. Another reason is that demographic variables are easier to measure than most other types of variables. If the market segment were to be defined using other bases such as benefits sought or behavior, the demographic characteristics must be identified to evaluate the size of the target market and to reach it efficiently (Kotler & Armstrong, 2008, p. 175) Age and Life-Cycle Segmentation The needs and wants of the consumer change with age. Age and life-cycle segmentation offers different products or uses different marketing approaches for different age and life-cycle groups (Kotler & Armstrong, 2008, p. 175). Age had been used in earlier studies of ecology and green marketing by researchers (e.g. Aaker & Bagozzi, 1982; Anderson & Cunningham, 1972; Anderson et al., 1974; Hume et al., 1989; Kinnear et al., 1974; Leonard-Barton, 1981; McEvoy, 1972; Murphy et al., 1978; Roberts, 1995; 1996b; Roberts & Bacon, 1997; Roper, 1990; 1992; Samdahl & Robertson, 1989; Tognacci et al., 1972; Van Liere & Dunlap, 1981; Zimmer et al., 1994; Straughan & Roberts, 1999). Straughan and Roberts (1999) stated that the common belief is that younger individuals are likely to be more sensitive to issues of the environment due to the reason that they have been living in a moment where concerns of the environment is noticeable.

4 Gender As what Kotler and Armstrong (2008) said, Gender segmentation divides a market into different groups based on gender. Clothing, cosmetics, magazines, and toiletries are markets that have been using gender segmentation (Kotler and Armstrong, 2008, p. 175). Gender had been used in earlier studies of ecology and green marketing by researchers (e.g. Arbuthnot, 1977; Brooker, 1976; Hounshell & Liggett, 1973; MacDonald & Hara, 1994; McEvoy, 1972; Roberts, 1995; 1996b; Roberts & Bacon, 1997; Roper, 1990; 1992; Samdahl & Robertson, 1989; Stern, Dietz, & Kalof, 1993; Tognacci et al.,1972; Van Liere & Dunlap, 1981; Straughan & Roberts, 1999). Eagly (1987) holds that women will warily think the impact of their doings to other people as a result of social development and sex role differences (Straughan and Roberts, p. 560). Straughan and Roberts (1999, p. 559) stated that the conclusion of the significance of age to green consumerism is still vague because some studies have found age has no significant relationship (e.g. Arbuthnot, 1977; Brooker, 1976; Samdahl & Robertson, 1989; Tognacci et al., 1972), some have found the significant relationship (e.g. Hounshell & Liggett, 1973; Roberts, 1996b; Roper, 1990; 1992; Stern et al., 1993; Van Liere & Dunlap, 1981), and some have found the relationship to be the opposite (e.g. MacDonald & Hara, 1994; McEvoy, 1972). The study by Straughan and Roberts (1999) found age to be significantly correlated to ECCB.

5 Income Income segmentation divides a market into different income groups (Kotler and Armstrong, 2008, p. 176). Straughan and Roberts (1999, p. 560) stated that the common knowledge is that at higher income levels, people can cope with the increase in costs because of supporting green causes and green products. Straughan and Roberts (1999, p. 560) also stated that previous studies have studied the role of income for ECCB or a related construct (e.g. Anderson & Cunningham, 1972; Anderson et al.,1974; Antil, 1978; Kasarjian, 1971; Kinnear et al.,1974; McEvoy, 1972; Newell & Green, 1997; Roberts, 1995; 1996b; Roberts & Bacon, 1997; Roper, 1990; 1992; Samdahl & Robertson, 1989; Van Liere & Dunlap, 1981; Zimmer et al., 1994). Some have found the relationship to be not significant (e.g. Anderson et al.,1974; Antil, 1978; Kassarjian, 1971; Van Liere & Dunlap, 1981), some have found significant relationship, (e.g. Kinnear et al.,1974; McEvoy, 1972; Roper, 1990; 1992; Zimmer et al.,1994)., and some have found a negative relationship (e.g. Roberts, 1996b; Samdahl & Robertson, 1989). The study by Straughan and Roberts (1999) itself did not find income as correlated to ECCB Education Straughan and Roberts (1999, p. 560) said that the level of education is linked to environmental attitudes and behavior and had been researched in previous studies (e.g. Aaker & Bagozzi, 1982; Anderson et al.,1974; Kinnear et al.,1974; Leonard-Barton, 1981; McEvoy, 1972; Murphy et al.,1978; Newell & Green, 1997; Roberts, 1995; 1996b; Roberts & Bacon, 1997; Roper, 1990; 1992; Samdahl & Robertson, 1989;

6 15 Schwartz & Miller, 1991; Tognacci et al.,1972; Van Liere & Dunlap, 1981; Zimmer et al., 1994). Straughan & Roberts (1999) mentioned the result of the relationship between education and ECCB varies, some had found a positive relationship (Aaker & Bagozzi, 1982; Anderson et al., 1974; Leonard-Barton, 1981; McEvoy, 1972; Murphy et al., 1978; Roberts, 1996b; Roper, 1990; 1992; Schwartz & Miller, 1991; Tognacci et al., 1972; Van Liere & Dunlap, 1981; Zimmer et al., 1994), but Samdahl and Robertson (1989) found a negative relationship, while Kinnear et al. (1994) did not find education to have a significant relationship. The study of Straughan and Roberts (1999) itself found level of education as significantly correlated to ECCB Psychographic Segmentation Kotler and Armstrong (2008, p. 176) defined psychographic segmentation as dividing consumers into different groups based on social class, lifestyle, or personality characteristics. People in the same demographic group can have very different psychographic compositions (Kotler and Armstrong, 2008, p. 176). Though the research upon segmenting green consumers through psychographic variables have been attempted, the amount has not been as much as demographics (Straughan & Roberts, 1999, p. 561). Straughan and Roberts (1999, p ) also stated that more research into the psychographic correlates of ECCB is needed in order to find the stability of psychographic profiling.

7 Perceived Consumer Effectiveness (PCE) Perceived consumer effectiveness is the extent to which individuals believe that their actions make a difference in solving a problem (Ellen, Weiner, & Cobb-Walgren, 1991). Earlier studies have found that the belief of consumers in being able to positively influence the environmental problems relates to their behavior (e.g. Antil, 1978; Berger & Corbin, 1992; Kinnear et al., 1974; Roberts, 1995; 1996b; Roberts & Bacon, 1997; Webster, 1975; Weiner & Doescher, 1991; Straughan & Roberts, 1999) Environmental Concern (EC) Kim and Choi (2005) stated that the concern of consumers to the issues of environment may not directly result into pro-environmental behaviors (Laskova, 2007, p. 206). Studies had found environmental concern as a positive correlate of ECCB (e.g. Antil, 1984; Kinnear et al., 1974; Lepisto, 1974; Roberts, 1995; 1996b; Roberts & Bacon, 1997; Van Liere & Dunlap, 1981; Straughan & Roberts, 1999) Altruism Altruism is the unselfishness for the concern or welfare of others (Altruistic Marketing International). Stern, Dietz, and Kalof (2003) examined the role of social-altruism and egoism in predicting green behavior. Straughan and Roberts (1999) found that altruism played a significant role in predicting ECCB, and suggested that it should not be left out when profiling green consumers.

8 Requirements for Effective Segmentation With the countless ways of segmenting a market, not all ways are effective (Kotler & Armstrong, 2008, p. 182). In order to have effective segmentations, market segments must be: 1. Easy to identify: In marketing, the simplest way to identify segments is through demographic profiling (Straughan & Roberts, 1999, p. 563). Straughan and Roberts (1999, p. 563) stated that the typical profile of green consumers is young, mid-to-high income, educated, and urban women; these are all within the demographic scope. Straughan and Roberts (1999, p. 563) also said that the easiest way to differentiate consumers that worry about the environment and those that do not is through demographic variables. 2. Accessible: The consumers should be able to be effectively reached and served (Kotler & Armstrong, 2008, p. 182). Straughan and Roberts (1999, p ) stated that green consumer segments are not in doubt because companies have the ability to communicate with green consumers and to reach them effectively with the right products and services. 3. Size: The segmented market must be big or profitable enough to be served (Kotler & Armstrong, 2008, p. 182). Kotler and Armstrong (2008, p. 182) stated that a segment should become the largest possible homogenous group worth chasing with a

9 18 personalized marketing program. Roberts (1995) stated that the overall market for green products and services is large enough for a firm to operate profitably if properly managed, thus the size of green market is there (Straughan & Roberts, 1999, p. 562). 4. Strategic / operational effectiveness: Straughan and Roberts (1999, p. 563) stated that psychographic variables provided a model that is more effective than demographics for green consumers. The study by Straughan and Roberts (1999) gave an R 2 of for a demographics-only model consisting of age, classification, income, and gender; whereas the psychographic-only model consisting of perceived consumer effectiveness, environmental concern, liberalism, and altruism gave an R 2 of Stability: The study by Straughan and Roberts (1999, p. 563) stated that the stability of using demographic profiling for green consumer is concerned as previously mentioned. The result of Straughan and Roberts (1999) on demographic profiling is inferior compared to psychographics. Earlier studies have found the range of demographic profiling from vague to contradictory. Several explanations exist for these disparate findings. First, the various studies operationalize green consumption in a wide variety of ways. For example, the dependent'' variables used across these studies range from general attitude measures to incident analyses of specific types of environmentally friendly behavior (e.g. household recycling). As such,

10 19 study-to-study comparisons may be expected to result in seemingly contradictory findings. An alternative explanation for these contradictory findings, however, relates to the maturation of the green marketing phenomena. Quite simply, all of the studies might provide accurate snapshots of green consumption at that point in time. Because the movement was in the early stages of its life cycle, however, these relationships might change as time passes. Thus, what has been described throughout the green marketing literature is an unstable or ``...schizophrenic profile of the demographic characteristics of the green consumer'' (Roberts, 1996b, p. 219).